Premium pay is additional pay for work other than regular work. Premium pay might be paid for overtime, nighttime differential, holiday work, or weekend work. For example, if an employee works a night shift, you might pay $1 extra per hour.


In this article, you will learn:


How premium hours appear on a time sheet

Employees will see the premium pay on their time sheet as shown below. The Total Hours (highlighted in red) is the total number of hours and the bonus hours. In this example, the employee worked a total of 14 hours, but 12 hours was paid with bonus pay, hence the 26 total hours.

How to create a premium policy

  1. Log in to your Fingercheck account as an Administrator.

  2. Click the SETUP tab > Policies > Premium Policies.

  3. Click Add.

  4. In the Code field, enter an abbreviated name (for example, PREM).
    In combination with the Description field, this makes up the full name of the policy as displayed in other areas of Fingercheck.

  5. In the Description field, enter a short descriptive name (for example, Premium).

  6. In the Premium Rules section, click Add.

  7. In the Add Premium Rule window, complete the fields, and click Apply.
    The fields are defined in the About fields for premium policies section below.

  8. Click Save to save the policy.

  9. Apply the policy to your employees' master profile.

    1. Click the Setup tab > System > Master Profiles.

    2. Select the profile to which you want to apply your premium policy.

    3. From the Premium Policy drop-down list, select the policy.

    4. Click Save.

      For more information, see How to Set up a Master Profile.

About fields for premium policies

Premium Type

The type of premium pay. Many options are available, including Break, Overtime, and ShiftDifferential.

The DateTimeByDay1 option is popular for shifts that include days that offer bonus pay. For example, you might pay bonus pay for hours worked on Saturdays and Sundays.

Sequence

Enter a number to set the priority if two or more rules will overlap.

Start Time

The time of day you want to start the premium pay.

End Time

The time of day you want to end the premium pay.

Minimum Hours

The minimum number of hours the premium pay can be paid to an employee. For example, if you enter 4, an employee who works only 3 hours will receive 4 hours of premium pay.

Maximum Hours

Enter the maximum number of hours the premium pay can be paid to an employee.

For example, if you are creating a Break premium policy, you might enter 0.5 to pay for a 30-minute lunch break, but only if the employee works the number of hours in the Active After Daily Hours field.

Hours To Deduct

If setting a break premium, enter the number of hours to be deducted.

Active Before Daily Hours

Premium pay should only be active if the employee has less than this number of hours in a day.

Active Before Weekly Hours

Premium pay should only be active if the employee has less than this number of hours in a week.

Active After Daily Hours

Premium pay should only be active if the employee has more than this number of hours in a day.

Active After Weekly Hours

Premium pay should only be active if the employee has more than this number of hours in a week.

Minimum Time Worked In Rule

Enter the minimum amount of time the employee must work in the premium shift to receive the premium rate of pay.

Include Partial Punch

Select this option if employees might start their shift before the premium begins. Then, they are still eligible to receive the premium for any hours worked during the premium schedule.

Deduct Break Hours

Select this option if you do not want to pay premium pay for breaks.

Deduct Break Only After

Enter the number of hours that must be worked before a break would be deducted.

Include Paid Break

Select this option to pay the premium rate even during a paid break.

Include Meal

Select this option to pay the premium rate even during a meal break.

Cap Hours To Total Worked

Select this option to set the maximum number of premium hours to the number of hours actually worked.

Start Date

The date you want the premium policy to start.

End Date

The date you want the premium policy to end. To create a "permanent" policy, enter 12/31/2099 (or a date that is far into the future to ensure that the trigger keeps running).

Division Earning

Select an earning code from the drop-down list to define the pay rate for this premium policy.

This list is fed from the SETUP tab > Payroll > Earnings. (See How to Set up Earning Codes.)

Earning Type

Select the type of earning for this policy. In most cases, select Premium. Other options include Worked, Absence, and Meal.

This list is system generated.

Job

If the premium policy is for a specific job, select the job from the drop-down list.

For more information, see How to Create a Job.

Task

If the premium policy is for a specific task, select the task from the drop-down list.

This list is fed from the SETUP tab > Company > Tasks.


As always, we aim to enhance your experience here at Fingercheck with not only new enhancements but with guides to provide you with the direction and support needed to navigate the system with ease.

If you have any further questions on this subject, you can reach out to our team at 1-800-610-9501, or by using our in-app messaging feature by logging into our secure site and initiating a conversation.

To learn more about our cost-effective and user-friendly cloud-based time and attendance software, check out our website at Fingercheck.com.

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